Almost every HR administrator I’ve talked to says that managing benefits and HR can be time-consuming and error-prone. We believe this can be solved with the combined power of the broker and technology. Together, they provide a flexible, customizable HR and benefits technology solution that helps employers save time, reduce errors, and increase employee engagement.
Take on-boarding as an example. Employee Onboarding is an important HR function that directly impacts the engagement levels of new employees in the first few days. That’s why it is no longer treated as just another administration input. At the employer end, it makes sense to invest in an extended and intensive employee onboarding program. This is because, hiring a person involves a lot of contingent costs, and it is best that an employee once hired is retained for the long term. Research shows that employees have a higher chance of leaving the organization within the first 18 months. An effective new employee onboarding program can prevent just that, saving your company time, cost, and other expensive resources. An onboarding program can thus go a long way in improving the efficiency of hiring.
An Introduction to EaseCentral
Our clients are benefiting of going paperless with SF-based tech partner, Easecentral. As a leading provider of HR and benefits software, EaseCentral understands that the thoughtof changing your benefits enrollment process can be overwhelming. But if working with morethan 1,000 insurance agencies and 40,000 businesses has taught us anything, it’s thatswitching to online enrollment is worth it.
“We believe that an electronic trail is better than a paper trail”
In the words of our cleinst “We believe that an electronic trail is better than a paper trail”. For most clinets under 50 employees a full HRIS system can get punishingly expensive.A leading payroll company charges all incluisve package for $45/month. This pricey journey of HR and benefits technolog can be a turn-off. When we asked our clients if they were interested in an affordable online enrollment that that works with underlying insurance managed by us and payroll the answer is invariably “thats a no brainer”.
After we introduced EaseCentral, it did not take very long to acclimate to using the system. Our Agency help clients with the initial setup. With inutitive system clients hit the ground running. Employees do not need a lot of help either. In 2016, the first year we used EaseCentral had been successful. We walked employees through how to use EaseCentral. Soon after, they experienced their first open enrollment with technology and without paper.
HR and Benefits Technology in Action
Joe, our long time client and partner of a successful NYC Law Firm told me that he benefited the most from EaseCentral during open enrollment.“I have saved a significant amount of time managing documents, filing forms and no longer have to worry about where it all is”.
Before online enrollment, Joe used a manual checklist to keep track of all of the documentation and paperwork. “With EaseCentral’s HR and benefits technology, I save about 20 hours of work during open enrollment due to online submission of insurance forms. Additionally, each employee at Cyber Advisor saves at least one hour,” said Joe.
Joe also touched on the value of using EaseCentral for new hires’ benefits enrollment. “Not only does the system save me two hours of work per new employee, but my employees appreciate the flexibility the system gives them when choosing their benefits,” he said. This flexibility includes being able to determine what the plan is and what it will cost and viewing and enrolling in benefits at home with dependents.
How Employees Use It
1.First, employees are presented with only the benefit plans they are eligible for.
2.Employees can enroll in all benefit types, including short-term and long-termdisability, HSAs, and telemedicine.
3.Each benefit plan includes in-depth summaries that provide deductible amounts and co-pays. If carriers have educational content like videos, employees can view those inside EaseCentral too.
4.Employees can view side-by-side plan comparisons with the cost per pay period tohelp them determine which plan brings them and their family the most value.
5.EaseCentral also provides the accurate cost to the employee of each benefit planthey’re eligible for, and takes into account factors like dependents. Because thisprocess is completed entirely online, employees can share these details with theirdependents at home if they choose to.
ONLINE ENROLLMENT TECHNOLOGY
The benefits of online enrollment continue to make waves forbusinesses across the nation. Research shows that nearly 8million businesses will be moving their benefits and HRprocesses online by 2024.Businesses across the country are increasinglyadopting online enrollment software. These are some of the ways, using both technology and a personal touch, you can create a whole world of difference for the new employee. It is about engaging them during their initial time in order to create a sense of belonging and loyalty to the organization so that they remain in the company for a long time to come.
Are you interested in more information on expereincing 21st century HR, Payroll and Benefits Tech integrations? Please join us for Weekly Demo on Thursdays 4PM EST.
This article was originally published on the BambooHR blog.At BambooHR, we believe in people.
We believe that the most valuable resources an organization has are its human resources. And we believe in showing employees how valuable they are to the organization. That’s why we encourage offering valuable benefits and perks to employees, and it’s why we have created a culture of appreciation within our own company.
Learn More About Our Compensation Software
It’s a philosophy that’s not necessarily new—the idea that employees who are treated better perform better—but it’s starting to gain momentum in the professional world. Around the world, companies are beginning to realize that offering major benefits like flexible work schedules, unlimited PTO, and unique perks like a vacation reimbursement program can do wonders for morale and productivity.
Unfortunately, despite the growing body of evidence in favor of this philosophy, many employers are still skeptical and reluctant to offer much beyond a steady paycheck. To help convince naysayers that pampering employees promotes productivity, we asked industry professionals about their experiences with offering benefits and perks. The response was overwhelming, and each CEO, COO, and HR professional that responded was in favor of them.
Here, we share with you their insights, experiences and advice. We hope it will inspire you to go and do likewise. It’s our firm belief that as you use benefits and perks to show your workforce that their contributions are appreciated and that they are valued as individuals, you will see engagement levels increase, retention rates improve, and your organization will become more attractive to prospective employees.
The Impact of Benefits and Perks on Employee Engagement and Retention
It’s been a decade since the 2008 economic recession, and as the economy continues to recover, it’s increasingly an employee’s market. This is a fact that’s not lost on those in charge of hiring and retaining employees. Patrick Colvin, Strategic HR Business Partner at the USA Today Network, put it this way:
“Due to the improved economic and job market conditions, the advantage has shifted from the employer to the job seeker, and organizations need to recognize the correlation between benefits and employee retention. In today’s hiring market, a generous benefits package is essential for engaging and retaining your talent.”
It’s becoming harder and harder for employers to ignore: the healthier the job market, the easier it is for employees to jump ship when they find something better. Attracting and keeping employees takes offering them a position at a company where their work is seen as a valuable contribution.
“Benefits and perks are a huge part of employee engagement and retention,” says Mary Pharris of Fairygodboss. “For companies to attract top talent and retain them, competitive benefit packages are essential. Employees rely on a variety of benefits from employers, so making sure you’re offering competitive and desired benefits will help you in attracting talent.”
While not everyone agrees that attracting talent is the goal of perks and benefits, the belief in its power to boost engagement and retention is both ubiquitous and unanimous. “While benefits are not a large driver of talent acquisition,” says Jody Ordioni, Founder of Brandemix, “they have a tremendous positive impact on engagement and retention, especially now that millennials represent 30+ percent of today’s workforce.”
Most importantly, offering a generous benefits package has a non-trivial impact, observable by many businesses. According to Lee Fisher, HR manager at Blinds Direct, “For us, these perks are tremendously important, from the moment an applicant sees a job ad and applies for a job here. Five or six years down the line, employee benefits continue to play a major role in keeping our valuable team members happy.”
It seems every company that’s putting this philosophy into practice is noticing a difference. “Company benefits play a huge role in employee retention,” says Steve Pritchard, founder of Cuuver. “It’s a two-way street; if an employer is flexible and offers great benefits, staff are generally more likely to want to stay working for them and appreciate the perks they are being offered that they may not get at another company.”
Is There a Downside to Benefits and Perks?
Finding Balance
Despite the growing evidence, some businesses are still skeptical. The high price of some benefits may intimidate a cost-conscious professional. Some even believe their workforce can’t be trusted with the freedom and responsibility of benefits like flexible work schedules. Some don’t think they need or deserve such luxuries.
It may even be a simple lack of thinking outside the box on the part of the employer. Whatever the reason, each employer may be overlooking an important fact—that without their team, they don’t have a business. Benefits and perks are investments in your workforce, and they pay dividends in the form of loyalty and dedication to the company. Lisa Oyler, HR director at Access Perks, agrees:
We always say that no company has ever suffered from trying to be more empathetic to their customers and employees. The cost and effort are worth it when you consider the huge advantages of employee engagement and retention and the costs of turnover and disengagement.
Steve Pritchard of Cuuver put it this way:
In my experience, employees are very appreciative of the perks they are given and do not abuse them. I can’t say this will be the same in every business, but because these benefits are there to make them happier, employees generally make the most of them and perform better. Some companies believe that having strict rules and no extra benefits is the way to go – which is why they don’t hold on to their best staff members for very long.
There are several strategies—which can be implemented simultaneously—for achieving a balance between keeping costs in check and offering a generous benefits package.
Mollie Delp, HR specialist at Workshop Digital proposes one way: “Everyone has to be mindful that you still have to get your work done and that client needs will always come first.”
Wayne Sleight, COO of 97th Floor proposes another strategy: “Giving people more stuff won’t make them happier, but perks that support the company’s values, mission, and purpose will.”
Lisa Oyler offers us a third reason: “And as long as managers are setting clear expectations for employees, there shouldn’t be many issues with over-abuse of benefits. After all, benefits are only going to pay off for the company when employees use them.”
Obstacles on the Path
Even if you decide that your employees are worth the investment, there are hurdles to clear on the road to successfully implementing your benefits and perks. The biggest is friction between the previous company culture and the new policies, as pointed out by Jody Ordioni, founder of Brandemix:
The one negative I’ve become aware of is when managers aren’t on board with the benefits culture; i.e. if an organization encourages remote work but one’s manager requires all employees to be on-site, it creates a culture of resentment which could have an opposite effect from the desired results.
Matt Bentley, Founder of CanIRank echoes the sentiment: “If you are the type of Manager that…[is] more suited to micromanaging, then a flexible work environment may not be suited to you as you will naturally feel you need to double check what all of your staff are doing day-to-day.”
That’s not the only way managers and directors can undermine the positive aspects of employee benefits. Half-hearted commitment can be just as detrimental as outright opposition. In the words of Robin Schwartz, managing partner of MFG Jobs: “Before offering a new benefit or perk, it’s important to ensure that your organization has the means to make it permanent. The downside of introducing new perks is seeing them be taken away because they cost more than expected or just weren’t sustainable.”
In the end, if the benefits and perks are carefully planned and strategically implemented, the rewards will outweigh the costs.
The Most Effective Benefits and Perks
So what benefits and perks you should be offering? Which ones give you the highest return on investment? We think Patrick Colvin’s take sums it up best:
“The fact of the matter is, after health insurance, the most desirable perks and benefits are those that offer flexibility while improving work-life balance.”
Flexible Work Schedule/Telecommuting
By far the most ubiquitous, popular, and highly recommended benefit among business owners and management teams was a flexible work schedule (usually including telecommuting & work-from-home options). This is largely due to the much-discussed “work-life balance.” Michelle Hayward, CEO, and Founder of Bluedog Design thinks that flexible work schedules should see even more use:
The most under-appreciated and under-utilized perk in a modern workplace is flexibility. With accountability to the team in mind, employees are empowered to make decisions to attend a child’s school performance or to work from home when life happens or plan flex hours to make a commute less stressful.
Robin Schwartz agrees:
Flexible work schedules! Being able to occasionally work remotely as well as being able to shift hours that best fit an employee’s life and job goes a really long way in keeping employees happy and [maintaining] engagement. Knowing they are encouraged to balance their work and life is a great perk.
Matt Bentley firmly believes in the value of “no office and no fixed schedule. If people want to go snowboarding on a Monday morning, they can. Encouraging a healthy work-life balance is still the most appreciated perk.” So does Amanda J. Ponzar, Chief Marketing Officer at Community Health Charities: “For employees to bring their best selves to work and perform, they need flexibility to enjoy outside interests and family, truly integrating work and life.” Dana Case, Director of Operations at MyCorporation.comdoes as well:
I find that one of the most desirable employee perks is being able to provide flexible scheduling options to all of your team members…By accommodating the scheduling needs of your team members and their personal lives, you’ll see how much they feel appreciated and are motivated to work hard for the business.
Mary Pharris sees it as a must for working women, one with fewer and fewer excuses not to implement:
From our research, we know that women’s job satisfaction is directly related to job flexibility. More and more employees are wanting flexible work environments. In large part, I think this is because life isn’t confined to the hours before or after work. Employees want the option to take care both of personal and professional responsibilities on their own terms, and with so much technology to make working remotely easy, it’s increasingly easier for employees to satisfy this.
Far from stifling or inhibiting productivity, this benefit seems to enhance it, according to our responders. Lee Fisher puts it this way:
We’ve come to realize that flexible-working is one of the biggest benefits for our staff. When we give our team the option to adapt their hours and work locations, they appreciate our flexibility and in turn produce even better results. It’s a simple perk, but a seriously important one.
It also enables your team to be productive no matter where they are in the world, and no matter how scattered each member may be. Michael Hollauf, CEO and Co-Founder of Meister Task is a staunch proponent of digital collaboration, stating:
We’ve also enabled flexible working, encouraging employees to work from wherever they work best. To allow this, we encourage all team members to be available on Slack during working hours and track their tasks in our task management tool, so that all team members can stay in the loop with project progress, even when working across different locations.
So if your work doesn’t physically require the team’s presence in order to be completed, strongly consider offering them the flexibility to do the work on their own terms.
Generous/Unlimited Vacation
A close second to flexible work schedules is loosening the reins on PTO. Many employers keep a tight grip on both vacation days and personal leave (in some cases verbally or culturally discouraging the use of even those days that are permissible by company policy). According to the experts who responded, this is a serious mistake. Not only does this create a serious liability in the form of unused PTO, it tends to result in team members experiencing burnout and, frequently, leaving the company for more favorable employment.
When asked what one benefit he would most recommend, Steve Pritchard answered:
A generous amount of time off. Giving employees plenty of opportunities to pursue their personal passions and unwind from work can go a long way towards improving their performance when they are at work. This ensures they don’t become frustrated with the lack of ability to take more than one vacation a year or take a few long weekends.
He wasn’t the only one. Mollie Delp concurred, saying:
Unlimited Vacation – to give the team the flexibility and reassurance that they can feel comfortable taking time off without penalty goes a long way. They don’t have to stress over a random Friday or afternoon where they need to be somewhere else (for themselves or family) and how it will overall effect their time off at the end of the year. One of our core values is to be empowered to be awesome in work and life, and we want to be sure our team knows we stand behind this, and that they have the flexibility to take care of their life and those around them when needed.
So did Patrick Colvin:
If I could recommend a single perk for employees, it would be flexible or unlimited vacation time. This perk shifts the focus from employees just putting in hours to placing an emphasis on production and great results. It allows employees to take ownership causing them to consider what’s best for both themselves as well as the organization. Most importantly it sends an important message to employees and prospective employees about the company culture and values.
The key, however, seems to be making sure your team knows that when you say “take some time for yourself,” that you really mean it. Lisa Oyler put it this way:
“Give employees plenty of time off to reboot and spend quality time with their families – but also set clear expectations that [they] don’t need to have their phones out or be ready to take a work call. Let them unplug!”
Incentives/Gamification
Another great way to increase engagement is through prizes, bonuses, awards and other incentives. Turning work into a competition or game can motivate your team to do their best. It even works internationally, according to Christian Rennella, VP of HR & CoFounder of elMejorTrato.com:
“After 9 years of hard work and having gone from 0 to 134 employees, I can assure you that the best strategy is ‘gamification’…Thanks to this gamification we were able to improve our retention by 31.1 percent.”
Business managers who utilize incentives will often see that extra push once there are valuable items and experiences on the line. For instance, some companies offer a round of golf, 5-star brunch, or extended weekends if certain projects are completed ahead of schedule. This simple gesture is often enough encouragement for workers to get their act together and step up their game.
Health Insurance
Health insurance is usually the most expensive benefit (by a wide margin), but it’s also the most sought after. Paying for insurance out of pocket is expensive, and paying doctors’ bills without insurance is even worse, so it makes sense why applicants make career decisions based largely on insurance benefits.
This is most apparent amongst millennials, who frequently value insurance above all other benefits, according to Jody Ordioni:
“Studies show that health is the most important benefit to millennials, and therefore, offering a suite of benefits that relate to health (on-site health clinic, 100-percent paid health/dental/vision benefits) would be my top recommendations.”
Additional Ideas for Engaging and Retaining Your Team
We received a great deal of feedback in our survey regarding creative and innovative ideas that help sweeten the deal for prospective and current employees. Here are some of the ones we liked the best.
Free Food
“We hold ‘Pizza and Presentations’ twice a month, where we treat our employees to a catered lunch in one of our conference rooms. Not only does this allow our team to enjoy time together and receive updates about each department’s projects, it provides everyone a chance to celebrate milestones in the company. This is a great way to say thank you to your employees for their hard work.” — Emily Burton of Fueled
“We find that often it’s small things that matter. Like setting out bowls of healthy snacks throughout the office a couple days each week. It’s nice for the employees, good for health, but it also brings groups to the break rooms, where they can mingle and get to know people outside their own departments. The same concept applies to volunteer opportunities, and our highly competitive (yet still fun) 5k.” — Lisa Oyler
“The one we love the most is our ‘Monday Breakfast.’…we do it every two weeks and we order food from a local restaurant. It’s a great start of the week, we come to work and chat about how the weekend went, and start the day and week on a positive note.” — Tatiana of Enhancv
“Because people loved being recognized and people love food, ordering catered lunches can be a great way to bring employees together at the office. This will not only help establish a more sociable and welcoming environment, it also provides a much-needed midday break.” — Nate Masterson
Unique Time Off
“I like summer Fridays, which we do a version of at Community Health Charities (and other employers have offered this). Some employers have you work longer hours during the week and get every other Friday off, or for us, we close early every Friday afternoon for employees to get a jump on the weekend during the summer. This is very popular!” — Amanda J. Ponzar
“Snow days! When winter weather causes hazardous travel conditions, we encourage employees to stay home and take a ‘snow day’. Essentially, they are not charged against their leave for opting to stay out of the office. Many workers have children who may also have a canceled school day when bad weather hits. Encouraging employees to stay home, if possible, not only reduces the stress of their day but shows them that we value their safety. In return, we often see the employees ‘online’ or still producing work remotely.” — Robin Schwartz
The Motley Crew
“Here is what have developed: Allotment of volunteer hours per employee to use each month to give back to the local community; Unlimited Vacation; Team Building Budgets (or “Fun Budgets”); Opportunity to attend a conference or organization that can further develop your skills.” — Mollie Delp
“One of the most creative employee perks we’ve provided is organizing weekly company-funded yoga lessons within our offices…[we’ve also] taken a number of steps to provide employees with both in-house training and external professional development events, such as sponsored conferences.” — Michael Hollauf
“We found that [student loan assistance] reduced the financial stress student loan debt carries for our employees and had a direct result on our retention.” — Patrick Colvin
“We look for those things that require engagement. Like a stocked library and monthly book club, where 97th Floor purchases the books for participants. It’s provided the most value in terms of keeping engaged people further engaged and generating new ideas and insights that directly impact our culture, our work, the way in which we work and the lens through which we measure our successes, and failures.” — Wayne Sleight
“Typical benefits we offer include a great holiday package, regular bonuses, and dress-down Fridays. The more unusual perks are surprise retail vouchers after a great performance, and activity days like waterspouts, go-karting and treetop obstacle courses. We also host regular fuddles, where we extend lunch hours so our team can enjoy lots of food and socializing.” — Lee Fisher
“Two of the most creative I’ve heard about are maternity concierge service where this particular company helped with pre- and post-birth with everything from helping you choose the right car seat to facilitating meals. And the other, one company offers shipping costs of breast milk for moms, and more companies are incorporating this benefit for new moms who have to travel.” — Mary Pharris
“Today, even companies with conservative workplace cultures are trying to reduce the stress of ‘real-life’ by offering valet car parking, dry-cleaning, and in-house massages…Other benefit trends include student-debt repayment, benefits for significant others and even wedding expense reimbursement for couples.” — Jody Ordioni
“[‘Enhancv Talks’ are events] we organize internally. We have a Facebook group where we vote on topics and the people who can talk about that topic so that everyone can learn about it. [The talks allow] employees to learn and teach each other about topics they’re excited about. It helps improve relationships, public speaking skills [for] the ones that present, and it shows support for co-workers, promotes learning and encourages everyone to become better generally. Also, it doesn’t cost anything.” — Tatiana of Enhancv
How to Decide What Employee Benefits and Perks to Offer
Hopefully, in addition to providing a compelling argument, we’ve sparked some new ideas on where to begin with offering benefits and perks to your team. As for deciding exactly what to implement, that may be a little harder. Just remember, it all depends on what kind of talent you’re trying to attract. As Jody Ordioni puts it: “When considering which benefits to offer, companies need to consider their talent needs and tailor benefits to the wants and needs of the people they need most.”
But, you may be thinking, doesn’t everyone like more time off? Remember that, as Amanda J. Ponzar put it, “Different generations are looking for different things in the workplace. I love to focus and get work done, but one of my Millennial colleagues thought the [peace and] quiet was more ‘like a graveyard’ and wanted to be more social and engage with his colleagues to get energized about his work. We have employees from early 20s to mid-60s and not everyone wants the same perk so it’s important to ask employees.”
Michelle Hayward agrees: “The reality is that not all perks are created equal in the eyes of all employees. A certain subset of the employee population values high-quality health coverage. What motivates other can be money, time or notes of appreciations. As a leader, the challenge is navigating how dynamic the shifting sands can be.”
Remember what’s most important: making your employees feel like they are irreplaceable and not interchangeable. As Nate Masterson puts it: “No matter what you choose, it’s important to make employees feel like people that have something to offer, not just numbers or placeholders.”
Learn how our BambooHR Partnership can help your group please contact us at info@medcialsolutionscorp.com or (855)667-4621.
Survey Shows 94% of PEOs Expect an Increase in Employees
Businessman pressing a People concept button.
Professional Employer Organizations (PEO) growth doesn’t appear to be slowing down. Earlier this year, NAPEO released the results from there 2017 Q3 Industry Pulse Survey. The findings showed that PEOs are continuing to grow, and at an impressive pace. In the report, 72% of PEOs reported revenue growth in Q3 of 2017, compared to Q3 of 2016.
With all that is happening with employment laws, healthcare and health insurance, and other areas of HR that impact small and medium-sized businesses (SMBs), it is easy to see why PEOs and other HR outsourcing options are seeing, in many cases, rapid industry growth.
Now, NAPEOs latest Quarterly Pulse Survey, which compared the 4th quarter of 2017 to the 4th quarter of 2016, shows that PEO growth is still occurring, and will almost certainly continue in 2018 and beyond.
DATA FROM THE 2017 Q4 NAPEO PULSE SURVEY
The NAPEO Quarterly Pulse Survey – Q4 2017 was conducted in early 2018, and was taken by 32 PEO executives.
The first result from the survey looked at PEO revenue. 71.9% of PEO executives said their organization’s revenue increased in Q4 of 2017, compared to Q4 of 2016.
Broken down further, 50% said that revenue increased somewhat, and 21.9% said revenue increased significantly.
Next, the survey showed that PEOs experienced an increase in the average annual wage per worksite employee (WSE), with 65.5% of executives responding.
NAPEO’s findings also revealed that 66% of PEOs saw an increase in gross profit. Of this 66%, 43.3% said gross profit increased somewhat, while 23.3% said it increased significantly.
OPERATING INCOME, NUMBER OF CLIENTS, AND WSE PROJECTION DATA
The next group of results from the survey uncovered data around operating income, the number of clients, and worksite employee projection information.
First, the report showed that 65.7% of PEO executives reported an increase in operating income in the 4th quarter of 2017, compared to the 4th quarter of 2016. The 65.7% can be broken down further, with 43.8% saying that operating income increased somewhat, and 21.9% increasing significantly.
Next, 59.4% of PEOs said that the number of clients increased, while 31.3% said that the number of clients stayed about the same. Of the 59.4%, 50% said that clients increased somewhat, and 9.4% said clients increased significantly.
Lastly, the survey asked PEO executives about worksite employee (WSE) projections over the next 12 months.
Perhaps the most promising and impressive statistic found in the quarterly survey, almost 94% expect WSEs to increase. Here is the full breakdown:
71% expect EE to increase somewhat
22.6% expect EE to increase significantly
3.2% expect EE to stay about the same
3.2% expect EE to decrease somewhat
With PEOs seeing an increase in revenue throughout 2017, and executives overwhelmingly expecting EE to increase over the next 12 months, revenue outlooks for the rest of 2018 and into 2019 look extremely promising throughout the PEO industry.
PROFESSIONAL EMPLOYER ORGANIZATIONS CONTINUE TO THRIVE
Much like the last few Quarterly Pulse Surveys from NAPEO, the 2017 Q4 survey shows that despite all of the uncertainty and complexity with various areas of HR, PEOs continue to grow.
Regarding the survey, Pat Cleary, President & CEO of NAPEO, said, “This is just the latest example that more and more business owners are realizing the true value of using a PEO. Surveys and studies consistently show that using a PEO is good for a business and its employees. PEOs provide a real benefit to businesses by providing HR services and solutions that they would otherwise be unable to afford.”
Some additional findings from the survey include:
Average annual wage per WSE increased somewhat
Average number of WSEs per client company stayed about the same
Number of internal employees (including salespeople) stayed about the same
Number of Worker’s Compensation claims reported to carrier stayed about the same
The survey also revealed that the average PEO has 19 worksite employees per client.
Learn how a PEO can help grow your business. Check out PEO Case Studies here and learn how they can apply to you.
Click below for a free PEO assessment. OurPEO Quoting Tool ensures that we have first-hand insight as to what the small business owner needs to be successful.
Spring started yesterday but Old Man Winter did NOT get the Memo. So what to do if it snows and employees are unable to get to work?
IF YOU CLOSE YOUR BUSINESS
If your company decides to stay open during bad weather, it’s important to understand some of the risks you face. According to a Connecticut Business and Industry Association survey of 430 member-companies, the most common practice when “bad weather forces a closing” is to pay hourly employees only for the hours actually worked. “This was true for a majority of both small employers (25 to 249 employees) and large employers (more than 250 employees),” according to the survey.
EXEMPT EMPLOYEES
Exempt employees should be paid if a business is closed due to inclement weather- they should receive their weekly salary for this time. However, an employer can take these days out of the personal days, vacation time, or paid time off. As an employer, it is respectful and in some places required to alert employees that it will come out of their personal time. If it one full week of closure, employees do not need to be paid for that time. However, if work is done during any of the time the business is closed, employees need to be compensated.
If your company chooses to use accrued time to pay employees, but an employee does not have any paid time off accrued, you still must pay the employee their full wage. In some cases they will need to examine contracts to ensure that there are no limits to how much time can be taken away. However, if vacation or PTO is notoffered to employees in general, exempt employee should still be paid.
NON-EXEMPT EMPLOYEES
For non-exempt employees they do not need to be paid for hours they do not work. However, a company may give them the option to elect to use their paid time off or vacation time. When it comes to non-exempt employees who are paid a fix weekly salary for fluctuating hours they must be paid for the week if they work for at least three hours.
Local State Policies on Sending Employees Home
Like above, if an exempt employee goes to work, they must be paid for the entire day. However, non-exempt employees do not necessarily have to be paid for the time they do no work. Some states have reporting time pay- which means that they need to be paid for a certain number of hours regardless of whether or not they worked.
CONNECTICUT – This law only applies to four industries: beauty shop, mercantile trades, and laundry/cleaning/dyeing operations, all must be paid for a minimum of four hours and in the hotel and restaurant industry a minimum of two hours. It can be waived if the scheduled shift is less than four hours.
NEW YORK – Regardless if there is work to be done, if an employee shows up they must be paid for at least four hours of work, unless the scheduled shift is less than four hours in which case they must be paid for the full amount of time. This does not apply to: employees who are on call or live on the employers’ premises, building service industries, administrative, executive, profession, outside sales, farm laborers, taxicab drivers, babysitters, companions, golf caddies, staff counselors, and booth renters (those who rent space in a beauty shop).
EMPLOYEES WHO CAN’T MAKE IT TO WORK
If your business chooses to open but an employee cannot make it to work exempt employees can lose time out of their personal or vacation time. If no time has been saved or it has all been exhausted an employer may deduct funds from pay, only if the employee misses a full day of work.
TELECOMMUTING
If you allow employees to work from home, or expect them to work from home in the event of inclement weather they must be paid. Exempt employees should be paid for the day, or week, whichever is applicable. If an exempt employee is expected to any work whatsoever from home, or another location they must be paid for that time- even if it is beyond a week that the company is closed. As always, non-exempt employees should be paid for the hours they work.
If you are an employer it is important to recognize that snow days are an opportunity for you to support employees, especially those who have children or commute more than an hour away. If our HR Partners have written your employee handbook, office closings and delays are already addressed but it is important to use your best judgement a communicate with your employees early enough to give them time to make arrangements depending on their situation.
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Professional Services: New York Law Firm’s Benefit Benchmark Study Reveals Gap In Offerings
A law firm with a benefit offering below the New York law firm benchmark, no HR person on staff, no formal recruitment strategy and no employee development plan was struggling to attract top lawyers and paralegals, and to keep top producers. This was affecting their stability, employee morale, and ultimately, their bottom line. After losing one of their highest billing attorneys and a key associate to a larger firm with more robust benefit offerings, they realized they needed to make an immediate and drastic change to recruit and retain quality employees.
SOLUTION
Our PEO partner immediately assigned a seasoned Human Resources Manager with vast experience working with law firms to help, and conducted a market analysis of other firms in the area. After establishing a benchmark, the PEO developed an innovative employee benefits program that rivals top law firms in the area. Our PEO partner then devised a recruitment and retention strategy designed to reposition the firm in the marketplace.
RESULT
The firm now offers benefits and employee development that are on par with their top competitors. They have a clear plan on how to increase employee satisfaction and retain quality people while attracting top new talent. Their turnover has reduced significantly, and employees shared positive feedback during and after their benefit enrollment meetings via employee satisfaction and engagement surveys. Leadership can now focus on clients and on growing the firm.
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Contact Us Now Learn how our Agency is helping buinsesses thrive in today’s economy. Please contact us at info@medicalsolutionscorp.com or (855)667-4621.
Updating Your Employee Handbook for Benefit Provisions
Alex Miller | Millennium Medical Solutions | (855) 667-4621 | alexm@medicalsolutionscorp.com.
Have you updated your Employee Handbook for Benefit Provisions? Handbooks are important for many reasons such as informing employees of their rights and duties, communicating available resources, and outlining paid time off policies. With respect to health and welfare benefits, here are a few things to consider:
1. Does your handbook go too far?
Handbooks cannot change the terms of governing benefit documents such as summary plan descriptions (SPDs). Handbook provisions should mirror plan terms and/or refer
to plan documents. Any provisions purporting to amend plan documents are ineffective. However, handbooks may ll in the blanks where the plan documents are silent or refer to outside policies. For example, an SPD may indicate that certain eligibility criteria is determined by the employer. In this case, that criteria may be explained elsewhere such as a handbook or benefit booklet.
2. Are all handbook provisions current?
A handbook should reflect current, compliant provisions such as those addressing benefits, eligibility, and termination.
Does your handbook exclude certain employee groups from benefits (e.g., temporary employees or interns)? If so, be aware of potential exposureunder the Employer Penalty which defines a full-time employee as any employee who works at least 30 hours per week. There are no exclusions of categories of employees. However, if using the look back measurement method, part-time employees,seasonal employees, and variable hour employees can be asked to wait up to 13+ months to determine full-time employee status without penalty.
Does the handbook contain an outdated waiting period (e.g., indicating that plan entry is the first day of the month following 90 days of continuous service?
Does the handbook contain conflicting eligibility terms? For example, does the handbook indicate that an employee must work at least 40 hours per week to be eligible for benefits when an employee must only work at least 30 hours per week?
If the look back measurement method rules are being used, are those referenced or outlined?
Does the handbook indicate that same-sex spouses are excluded from benefit eligibility? Excluding same-sex spouses is not advisable due to recent court cases and EEOC discrimination inquiries and likely conflicts with plan terms. It may also conflict with the company anti-discrimination workplace policy.
3. Does the handbook demonstrate that an offer of coverage was made?
Under the Employer Penalty rules, an employee must be offered an effective opportunity to accept coverage at least once with respect to the plan year. Final regulations do not apply any specific rules for demonstrating that an offer of coverage was made.
Many employers require an affirmative waiver of medical benefits. This is the best method to prove an offer was made, provided that a waiver can be collected from every single employee waiving. Otherwise, any waiver not returned by the employee arguably proves that he was never made the offer.
When an affirmative waiver is not required, otherwise documenting information regarding the election process is key. An employer will want to show that employees received sufficient information about the offer so that they must have known medical coverage was available.A widely-distributed handbook with clear information about the offer and its terms can be a valuable part of an employer’s distribution of information as well as benefit booklets, email correspondence, posters, mandatory meetings, etc., as applicable.
If you need assistance with creating or modifying your handbook, please contact us and we can help you with a solution.
NOTE: This document is designed to highlight various employee benefit matters of general interest to our readers. It is not intended to interpret laws or regulations, or to address specific client situations. You should not act or rely on any information contained herein without seeking the advice of an attorney or tax professional.
